MONEY MATTERS
Page 74
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Mann Egerton's Good Results
rro follow five successive years of record profits the / market confidently expected MANN EGERTON to make it six in a line in respect of the trading year ended September 30 last. And the market was not disappointed. At 1537,454, group trading profit compared with 1456,951 the previous year. Out of these higher earnings the directors propose a final dividend of 12+%. This makes the total for the year in% payable on a capital doubled by a scrip issue. It represents an effective increase of 21% in the distribution.
After taking into account the higher tax charge net profits rose by about 6% above those for the trading year 1962-63. It could be argued that with car sales being at the high level they were during the period this increase is rather disappointing. But the fact that the price of these 5s. Ordinary shares was unaltered at around 14s. 3d. after the announcement of the figures seems to me to reflect fairly general satisfaction with the group's performance. At this price they yield an above-average 61% based on the latest dividend. 1 would certainly not "think again" to a potential purchaser.
The shareholders of DOVVTY GROUP can look forward to their company enjoying another record year -a year that will terminate on March 31. This good news was given by the chairman, Sir George Dowty, in the interim statement. Reporting on the operations for the first half of the year, Sir George comments that the order books constitute a record. "Our business looks certain to continue its expansion", he adds. As a result of the diversification of trading interests there is likely to be little adverse effect felt front the possible curtailment of certain aircraft industry orders. Meantime, the interim dividend is being stepped up by 1% to 31% tax free. For the trading year 1963-64 the total distribution was 8% net. These 10s. Ordinary units have been a firmer market since the interim announcement and they currently stand at 32s. 3d. to yield 41% on the latest dividend-that is 8%.
quieter than expected start to the dealings in A TINVOOD GARAGES 5s. shares may well have been the result of the general quietness of markets. Placed at 55. 71d. they are currently standing around Sr 81d. An outstanding feature of the issue is the high assets backing; this amounts to 6s. 96. per share. The present annual rate of profits of this Midland-based commercial motor, car dealers and engineers is 1130,000. If the dividend is at the 84% rate expected the yield would be about 7:% at the present price. The shares do not look os er-valued.
Martin Younger